Mexico Pemex Hopes Chicontepec Zone Can Stop Oil Output Fall

Mexico hopes to boost oil production at the under-developed Chicontepec area over the next decade to help offset declining output at the country’s largest field, Cantarell.

After the country’s oil output peaked at 3.4 million barrels a day in 2004, state-owned oil monopoly Petroleos Mexicanos (PEM.YY) needs to act fast to develop new oil reserves and reverse a steady decline. Oil is one of Mexico’s main export products and accounts for nearly 40% of government revenue.

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